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INDEMNIFICATION AGREEMENT <br />THIS AGREEMENT is made and entered into this ~'7~day of Ivl~ ~ 2006 by <br />and between Gary Rinderle Construction, Inc., a Colorado Corporation, hereirfafter referred to as <br />"Rinderle" and Ute Water Conservancy District, hereinafter referred to as "Ute Water". <br />WHEREAS, Ute Water currently owns and operates domestic water pipelines along 35 <br />Road in the SW 1/4 SW 1/4 of Section 17, Township 1 South, Range 2 East, of the Ute Meridian, <br />Mesa, County, Colorado. <br />WHEREAS, Rinderle is in the process of converting a Limited Impact (110) Reclamation <br />Permit to a Regular (112) Reclamation Permit from the Colorado Division of Minerals and Geology <br />for the purpose of mining, processing and removing sand and gravel (construction and landscape <br />materials) within 200 feet of the domestic water pipelines owned by Ute Water. Such mining <br />activity is known and referred to as UPLAND GRAVEL. <br />WHEREAS, the Colorado Division of Minerals and Geology has conditioned such mining <br />permit on Rinderle, indemnifying and holding Ute Water harmless for any damages that may occur <br />to its domestic water pipelines and related facilities within said 200 feet, as a result of Rinderle <br />conducting such mining activities authorized by said mining permit. <br />NOW THEREFORE, except to the extent caused by the negligence of Ute Water, its <br />agents, employees or assigns, Rinderle shall defend, indemnify and hold harmless Ute Water, its <br />agents, employees or assigns for any loss, cost or damage to said domestic water pipelines and <br />related facilities, including, without limitation, reasonable attorneys' fees and court costs, arising <br />from or related to the exercise of the rights granted under such mining permit. Rinderle shall <br />conduct its activities in a safe and prudent manner and shall comply with applicable rules and <br />regulations promulgated by federal, state and county agencies, including, but not limited to <br />reclamation obligations relating its mining operations. <br />All of the covenants and agreements set forth in this Indemnification Agreement are <br />intended to be and shall be construed as covenants (and not conditions) running with the land, <br />binding upon, inuring to the benefit of and enforceable by Ute Water, and Ute Water's successors <br />and assigns. <br />IN WITNESS WHEREOF, Rinderle has caused this Agreement to be executed and it shall <br />become effective as of the day and year first above written. <br />Gary Rinderle Construction, Inc., <br />a Colorado Corpor o <br />By: ~ <br />~" ary Rinderle, President <br />INDIVIDUAL ACKNOWLEDGMENT <br />STATE OF COLORADO ) <br />)ss. <br />COUNTY OF MESA ) <br />~ti <br />The foregoing instrument was acknowledged before me this ~~ -day of <br />2006 by Gary Rinderle, President of Gary Rinderle Construction, Inc. <br />Wit ess my hand and official seal. ~-~, <br />~;~ <br />LEAH JOHNSON ~"~~ ~ "/- ~ --' <br />NOTARY PUBLIC Notary Pu io <br />STATE OF COLORADO <br />My Comm~Mwe 6xdrvs 11!1712908 My commission expires: (I ~ l ~ 1 ~) <br />I hereby waive formal notice requirements and have no objections to the 110 permit conversion to <br />112c. <br />Reviewed and Accepted by: <br />/. <br />`: <br />~,~iC~---l=-~_ ~~z~ i 7 M.E,, G'c- <br />Ute Water Conservancy District Date <br />